Not yet reviewed by Pith; the record is open.

The aim of this paper is threefold. First, it presents a multi-dimensional Markovian state transition model characterizing the behavior of the IEEE 802.11 protocol at the Medium Access Control layer which accounts for packet transmission failures due to channel errors modeling both saturated and non-saturated traffic conditions. Second, it provides a throughput analysis of the IEEE 802.11 protocol at the data link layer in both saturated and non-saturated traffic conditions taking into account the impact of both the physical propagation channel and multirate transmission in Rayleigh fading environment. The general traffic model assumed is M/M/1/K. Finally, it shows that the behavior of the throughput in non-saturated traffic conditions is a linear combination of two system parameters; the payload size and the packet rates, $\lambda^{(s)}$, of each contending station. The validity interval of the proposed model is also derived. Simulation results closely match the theoretical derivations, confirming the effectiveness of the proposed models.